The federal government is planning a new measure to limit the automatic indexation of high salaries: indexation to the nearest centime. The bill is currently being debated in Parliament.
What does this involve? Currently, in Belgium, salaries are generally indexed automatically when the cost of living rises. Under the new measure:
- salaries up to €4,000 gross per month will continue to be indexed as normal
- for gross salaries above €4,000, indexation will be limited:
- indexation will initially apply only to the portion up to €4,000
- until a cumulative indexation of 2% is reached;
- above this threshold, the remainder of the indexation will again apply to the entire salary;
- the €4,000 threshold applies to the fixed basic monthly salary (scale-based or actual) for full-time employment
This is therefore not a jump in the index, but a temporary and partial wage restraint, which may be spread over several indexation rounds.
This indexation in cents will be applied twice, starting no earlier than June 2026, and then a second time from January 2028.
When will the impact be visible? This depends on the indexation mechanism for each sector. Employers in the paper and board processing sector will have to apply the cent-based indexation for the first time in July 2026, those in the paper industry in November 2026, and in the glass sector once the pivot index is exceeded.
Please note: the savings achieved through indexation in cents do not go entirely to the employer. Half must be paid to the State via an employer’s wage moderation contribution.
The text is still a draft bill: amendments remain possible during the parliamentary process.
